Cashflow per door on larger apartment buildings

[Carole G.]

I have read that you should expect $200/door on apartment buildings. Does that number change with the size of the apartment building? Do you expect less as the apartment complex gets bigger because you make more with the increased number of apartments?

[Jon Klaus]

More parameters are needed. A more useful single metric might be cap rate. In my market, I'd expect 9% cap on a class C, 7.5% on class B, and 6% on class A. So for a million invested (no debt), I'd expect net operating income of $90K, $75K, and $60K, respectively. But I'd also expect to have less doors as the class goes up. For example, 30 doors on the class C, 23 doors on the class B, and 15 doors on the class A.

Economies of scale on bigger properties? Yes. If the property can afford a full time on site manager/leasing agent, and a full time maintenance/make ready tech, your costs per unit will be less.

As far as cash flow you need to retire comfortably, you'd need to be more specific on that. Also the capital you have to invest, and the amount of debt you are willing/able to take on.